86-0153 - Sales and Use

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

COLLECTION DIVISION OF THE

UTAH STATE TAX COMMISSION, :

)

Petitioner, : INFORMAL DECISION

) SALES TAX LICENSE

v. : REVOCATION REQUEST

)

XXXXX, :

c/o XXXXX, ) Appeal No. 86-0153

: Sales Tax No. XXXXX

Respondent. )

_____________________________________

STATEMENT OF CASE

This is a Decision from an Informal Hearing regarding the sales tax license revocation of XXXXX c/o XXXXX (Respondent) requested by the Collection Division of the Utah State Tax Commission (Petitioner).

The Sales Tax License Revocation Hearing was held on XXXXX, at 9:00 a.m. in the offices of the Utah State Tax Commission. James E. Harward, Hearing Officer, heard the matter for and in behalf of the Tax Commission. XXXXX represented the Respondent. XXXXX, Field Unit Supervisor, represented the Petitioner.

Respondent testified that he was aware of his sales tax liability and that he owed $$$$$ including penalties and interest. He testified that he was trying to sell the assets to pay the Small Business Administration loan. He said that if the business were closed, it would be difficult to sell, and that he had no income to pay the tax liability, but that he anticipated clearing up his tax liability by the end of July, XXXXX, by paying $$$$$ to $$$$$ per month.

Petitioner testified that the Respondent filed his returns the morning of the hearing, XXXXX. Petitioner testified further that the business was closed down in XXXXX, and that the SBA loan secured all of Respondent's assets. Petitioner said that Respondent needed time to sell the business and that he had a prospective buyer, but that the sale would not cover the Respondent's tax liability.

After reviewing the evidence presented and the written documentation submitted, the Commission makes the following determinations:

FINDINGS

1. Respondent was issued a Sales Tax License No. XXXXX. Respondent is not incorporated.

2. Respondent was responsible for the collection of sales tax on the sale of his goods and services and was required to remit these taxes to the State Tax Commission. Utah Code Ann. § 59-15-5 (1953).

3. Respondent did not properly remit the full amount of sales tax collected each quarter.

4. The Utah State Tax Commission is vested with the authority to revoke the license of "any person violating any provision of the [Sales Tax] Act . . . ." Utah Code Ann. § 59-15-3 (1953).

DECISION AND ORDER

THEREFORE, IT IS HEREBY DECIDED:

1. That Respondent's Sales Tax License No. XXXXX is hereby revoked for failure to comply with the provisions of the Utah Sales Tax Act, Utah Code Ann. § 59-15-5 (1953).

2. That Respondent is ordered to close the doors of XXXXX and to deliver his sales tax license to the Utah State Tax Commission. Failure to comply with this order may result in criminal prosecution being taken against the Respondent.

3. The revocation of Respondent's sales tax license is effective immediately, unless the Respondent requests in writing, within three working days from receipt of this decision, that the Commission stay the execution of this order for thirty (30) days, provided the Respondent is able to prove that the following conditions have been met:

a. A bond has been posted in the amount of the tax, penalty, and interest that is currently delinquent and due. The bond must be in the form of a cashier's check, certificate of deposit, surety bond, or cash; and

b. An account has been opened in a local financial institution by the end of the first banking day following receipt of this decision. The account must name the Respondent's company and the Utah State Tax Commission as co-owners. In addition, the Respondent must make weekly deposits into the account in the amount of the current accruing sales tax liability.

DATED this 7 day of August, 1986.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco

Commissioner